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World Trade In Education Services with Emphasis on New Zealand
Mar 22, 2003

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  • Comment Board
  • Following the implementation of the aggressive governmental strategy and the fast growth in demand in Asian markets for qualified workers, education exports constitute one of New Zealandís top foreign exchange earners. The revenues not only stem from direct education spending but also from demand for room and board and other living expenses. By 1999, the education sector was already New Zealandís 4th largest service export earner and the 15th largest contributor to the overall trade balance. Following the Asian financial crisis, exports of education services in New Zealand have more than doubled and reached a formidable New Zealand $ 900 million in 2002.

    Although foreign fee paying (FFP) of students studying in New Zealand has historically accounted for the majority of education exports, in recent years offshore modes of provision have experienced extraordinary growth. Distance education provided through the Internet increased at a formidable rate and reached 32% of offshore education exports, exports through campus established abroad with teaching presence has 42%. The remaining 26% belongs to combined modes of provision

    The amount of interaction between international and domestic students in New Zealand is low Ėand there have been few changes in the content or process of educational activities in multi-cultural classrooms. According to studies form the Ministry of Education, international students appear to make greater use of support services, e.g. health services, although the available data are patchy and largely limited to some institutions. But that is clearly reasonable since Asian students are by far the greatest source of international students in New Zealand with 85% share of all international students. Europe with 8%, Oceania with 3%, America with 3% and other regions with 3% complete the sources of international students.

    However, this is not just the case for New Zealand, 45 percent of all foreign students studying in the OECD area were from Asia in 1999. New Zealandís advantage to serve this region is the proximity to Asia, the use of the English language and the lower living costs in New Zealand when compared to near-by competitors.

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